Essar Oil in talks to extend January UK VAT payment deadline
The brand of Essar group is seen at its headquarters in Mumbai, India August 21, 2017. REUTERS/Danish Siddiqui
Sept 26 (Reuters) – Essar Oil UK, the operator of Britain’s Stanlow oil refinery, is in talks with UK authorities over extending a January deadline to repay tons of of thousands and thousands of kilos in deferred taxes, the corporate mentioned on Sunday.
Essar Oil mentioned it nonetheless wanted to pay 223 million kilos ($305 million) to HM Income & Customs (HMRC) by January, confirming an earlier report in , which mentioned the corporate had used the federal government’s pandemic VAT deferral scheme final yr.
Essar, in response to a Reuters request for remark, mentioned that it had already repaid HMRC 547 million kilos out of a complete 770 million kilos.
The corporate had agreed an accelerated schedule with HMRC to make the remainder of the cost, which it has not been in a position to meet resulting from a slower than anticipated restoration from the pandemic.
In a press release to Reuters, Essar mentioned it’s in discussions with HMRC over a “brief extension” to make the deferred VAT funds.
“These discussions are optimistic and EOUK appears ahead to a decision quickly,” it added.
It additionally mentioned that the corporate had returned to optimistic EBITDA (earnings earlier than curiosity, taxes, depreciation and amortisation) and due to this fact is in a “a lot stronger place to climate the continued problem introduced by the pandemic”.
Essar in Could secured greater than for the Stanlow refinery after hitting short-term monetary difficulties.
Stanlow, which employs 900 folks immediately and an additional 800 contractors on website, provides street gas to northwest England, and jet gas to Manchester and Birmingham airports.
have been snaking their solution to fuel stations in Britain the place an acute scarcity of truck drivers has led to gas rationing in plenty of garages and a few pumps operating dry, and prompted the federal government to contemplate issuing non permanent work visas.
($1 = 0.7311 kilos)
Reporting by Akriti Sharma and Juby Babu in Bengaluru; Modifying by Kirsten Donovan
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